Chorion buys caterpillar for US drive

Chorion has bought the production and merchandising rights to The Very Hungry Caterpillar and other popular children's books in the hope of breaking into the lucrative American market.

Chorion, which owns the rights to British children's classics such as Noddy and the Mr Men series, yesterday said it had purchased New York-based Silver Lining Productions for an undisclosed sum.

As well as Eric Carle's The Very Hungry Caterpillar - one copy of which has been sold every minute since the book was first published in 1969 -Silver Lining owns the production and merchandising rights to children's bestsellers including Ian Falconer's tales about Olivia the pig, and Babette Cole's 84 children's books. The publishing rights are still with the authors.

Chorion, which develops television programmes and merchandising based on its literary brands, said the acquisition would strengthen its position in the US. It has begun to make inroads into the biggest toy market in the world with the launch last month of the Make Way for Noddy cartoon series on PBS.

Olivia, which has sold 2.5m copies since it was released in 2000, is likely to be the first Silver Lining brand Chorion turns into a television series.

The founders of Silver Lining, Amory Millard and Diana Manson, will join the Chorion senior management team. Chief executive Nicholas James said the companies' brand portfolios were a "perfect fit".

"The talents of the Silver Lining co-founders in television and licensing will be tremendous assets for Chorion," Mr James said. Analysts estimated Silver Lining would not have cost Chorion more than £2m. Chorion said the acquisition would be earnings neutral in the first full year.